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Retail investors often feel left out of the stock market as it is often difficult to access and absorb information when the factors and trends to be identified are not too clear. That’s why analyzing what Wall Street analysts are doing can be an important checklist for retail investors when looking for potential uses of their capital.

What’s especially important to keep in mind is that analysts talk to each other and more or less have assumptions in mind that drive these stock estimates. As such, any recent above-consensus upgrade should be viewed with all the more importance since it means the analysts did their best to publish that rating.

That’s why investors should pay close attention to three recent analyst ratings, because there’s a common thread behind these decisions and what’s happening in the broader U.S. economy today. These shares Chewie Inc. New York Stock Exchange: WH, CVS Health Company. New York Stock Exchange: CVSand even United Airlines Holdings Inc. NASDAQ: UAL to give investors a diversified way to gain exposure to the various trends and themes exciting the stock market today.

Why Analysts Think Chewy Stock Could Thrive in Inflation or Recession

Based on today’s price movements across various asset classes, investors are now faced with the potential for two distinct challenges in the United States economy. The first, caused by the sudden rise in gold and cryptocurrency prices, is the possibility of renewed inflation. Secondly, it is caused by the inability of the energy sector to emerge from the crisis as a result of low oil prices and recession.

Ultimately, if the dollar stays this strong for longer, the latter could become a reality, but that’s for another time. Today, investors need to focus on the fact that Chewy stock combines the stability of the consumer staples sector with the high profitability and high growth of the technology sector.

This business model would allow the stock to see less volatility and likely more upside potential in either of these two scenarios. Knowing this, Wall Street analysts may have found the stock easy to rally in recent weeks.

Bank of America upgraded the stock from “underperform” to “buy,” this time linking its view to the company’s price target of $40 per share. To prove this estimate correct, Chewy stock would have to rise as much as 15% from where it is trading today, not to mention hit a new high for the year.

CVS Stock Gains Momentum: Wall Street Projects Double-Digit Upside as Market Share Gains

Now that the news has been digested, Wall Street and the market know that Walgreens Boots Alliance Inc. NASDAQ: WBA Closing more branches could mean good news for CVS as market share shifts toward the latter.

Scalability and the ability to attract new customers are the difference between Walgreens and CVS’s financial performance, especially in terms of free cash flow (operating cash flow minus capital expenditures). Positive cash flow allows CVS to expand and maintain its locations in a way that Walgreens’ negative free cash flow cannot.

Because of this, TD Cowen analysts upgraded their Hold recommendation on CVS stock to Buy, this time pairing it with a price target of $85 per share. Based on how the stock is trading today, this new rating implies a net upside of up to 46.5%, offering investors the kind of upside they likely won’t find anywhere else in the medical sector.

In addition to this growth potential, investors can expect the company to pay out $2.66 per share, which translates to an annual dividend yield of up to 4.6%, which would outpace any inflation rates or recessionary slowdown that could hit the United States economy in the coming years. quarters.

Confirming these bullish numbers, Wall Street analysts now forecast that CVS stock will reach earnings per share (EPS) of $1.96 in 12 months, representing a net growth rate of 80% from today’s $1.09. This justifies the double-digit upside to today’s price targets and more.

Fuel cost hedging could push United Airlines shares to analysts’ forecast highs

Now that oil prices remain near cyclical lows, the cost of operating each flight and maintaining existing aircraft is also at the bottom of the cycle. This is always a good thing for capital-intensive companies like United Airlines. Moreover, the industry today is experiencing a rare combination of tailwinds.

The United States economy has picked up growth recently, driven largely by strong consumption, despite fears of a return to inflation or a potential recession. Strong consumer trends coupled with low fuel prices are two factors that could give United Airlines stock potential for double-digit growth in the future.

This is one of the factors Barclays analysts may have relied on to support their Overweight rating on United Airlines stock. The difference is that this time they have a much higher valuation of $150 per share, suggesting a net upside of up to 60% from today’s price.

Before you consider Chewy, you might want to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and Chewy wasn’t on the list.

While Chewy currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here

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